At least that’s what I think former Wharton professor and economist Joel Waldfogel is implying in his book Scroogenomics: Why you shouldn’t buy presents for the holidays (Princeton University Press).
In a 2012 interview with Bloomberg, Waldfogel argues that Americans end up wasting billions of dollars on presents during the holiday season every year:
“Normally, when we spend money on ourselves we only buy things that they’re worth at least the price. So if I see something worth $50 to me, I’ll buy it. Normally, spending provides some measure of satisfaction.”
He then contrasts this to giving gifts to others.
“Gift giving is really different. If I set up to spend $50 on you, I’m operating at a huge disadvantage– I don’t know what you like or what you already have. I could spend $50 and buy something that is worth nothing to you.”

As cliché as it sounds, the first million is the hardest. Having achieved recently my second in four short years instead of fifteen— saving for my first— is a testament to this. But why exactly is that? The short answer is it takes money to beget money. The more money …

What is the shortest path to wealth? Frankly, I have three words for you: “Marry for money.” Either that or “Win the lottery.” Neither is realistic nor practical unless you happen to be extremely attractive or incredibly lucky. If you ask a few personal finance gurus, however, you’ll get differing …

My first real encounter with death occurred while I was in Manila many years ago. I was riding a cab on my way to the City Hall when I was awakened from my short nap by the driver who was frantically exclaiming in Tagalog, “May tao, nasagasaan ng trak!” A man …

If you haven’t heard of Imelda Marcos’ legendary 3,000 pairs of shoes, it’s either you’re too young or live under a rock. Imelda Marcos was the Evita Peron of the Philippines, only greedier and more corrupt. Her conjugal dictatorship with the late president, Ferdinand Marcos, is listed in the Guinness …

If only more people paid attention to their paychecks than credit limits, we would have less poverty, homelessness, divorce, and more happy millionaires who don’t stress about money.

While this might come off weird for people outside the FI community, sharing our household net worth over the internet is a Labor Day tradition that I’ve observed since I started the blog four years ago. It’s all for transparency, accountability, and validation that the lessons I’ve been writing about …

A common adage among wealth advisors is “The first generation makes it, the second maintains it, and the third blows it.” Succeeding generations are left scratching their heads in wonder where the money went. No one epitomizes this better than the Vanderbilts. Considered as the first tycoon, Cornelius “The Commodore” …

Living longer is certainly a blessing. But being a 90-year-old with no money is not a particularly good problem to have. Your quality of life diminishes, and you become a huge burden to your kids, who already have responsibilities of their own.

The “Financial Independence Retire Early” or F.I.R.E. movement is gaining traction among millennials, and for a good reason. The idea that one could retire in his prime through a high savings rate and frugal living, as opposed to waiting until you’re old enough for Social Security, Medicare, or your funeral, …